Organic food products provide better nutritional value, taste, and higher antioxidants properties. These products will not utilize harmful chemical pesticides, herbicides, fertilizers, and insecticides during their production which will drive the overall market share from 2016 to 2024.

Governments, organizations, and agencies in various countries have taken initiatives to encourage non-synthetic crop production. Increasing awareness among consumers about health benefits related to the non-synthetic food consumption will positively influence organic seeds market growth.

Organic seed industry price trend is higher as compared to synthetic counterparts, which will positively impact the product penetration in developing countries. Also, lack of awareness among consumers and the demand-supply gap will inhibit the industry growth potential.

Vegetable led the organic seed market and will account for over 33% of the industry revenue by 2024. High nutritional levels, easy digestion, better taste, and higher anti-oxidant properties are main characteristics that encourage industry growth in vegetables including leafy & cruciferous and gourd & root.

Crop seeds market size may witness significant gains at over 11% up to 2024. China, Japan, India, and Indonesia are the major organic crop seed producing countries. It includes the production of rice, corn, barley, oats, rye, and alfalfa. Increasing awareness among consumers regarding food benefits and higher product availability, particularly in these regions would impact the industry growth positively. Also, increasing local farm cooperatives and producers would increase the product availability resulting in a higher market penetration. Supportive schemes and programs from different regional governments and organizations should drive the market growth.

Shift in consumer preference from chemicals and genetically modified crops to naturally sourced products may propel industry growth demand. Germany organic seeds market from fruits & nuts were valued at over USD 35 million in 2015. Growing awareness about the health issues and an increase fruits & nuts consumption should drive industry growth.

Organic Seeds Market, By Distribution Channel

Organic seed market is distributed through various channels including wholesalers, retailers, and cooperatives. Farmers use direct marketing through single or multiple channels. The type of distribution channel generally depends on the size of farms, country’s infrastructural growth, and on food and supply chain regulation policies and guidelines.

Organic seed Indutry size through wholesaler accounted for more than 60% industry share in 2015. Wholesalers buy these seeds from farmers in huge quantities, store in warehouses, and resell them to retailers. Governmental intervention in supply chain system should encourage market demand size.

Organic Seed Market, By Region

North America, led by the U.S. organic seed market, is foreseen to witness gains at over 12% up to 2024. With advancements in biotechnology providing better environmental friendly solutions to farmers will support the industry growth.

Governments and agricultural agencies have taken numerous initiatives such as educating farmers, favorable policies, loan initiatives, and tax incentives to boost natural farming. These initiatives along with growing awareness among consumers regarding food benefits are projected to support regional industry growth.

Europe market, led by Germany, France, UK, and Italy, will generate over USD 940 million business from wholesale segment. Advanced farming technology, along with governments’ supportive norms promoting industry growth. Better supply chain and growing consumer preferences regarding the non-synthetic food and beverages will fuel organic seeds market growth in this region.

The market participants experience a product supply shortage, thus failing to fulfill consumer demand. This leads to the low bargaining power among buyers and high bargaining power among the suppliers. The market also faces threats from new participants due to its high scope of development in unexplored regions of Asia Pacific, Latin America, and Africa.

Organic Seeds Industry Background

Organic seeds are produced by farmers, which exclude the use of insecticides, pesticides, chemical fertilizers, and any other use of chemicals in the field, harvesting, and processing it. It is also grown using sustainable agricultural methods, which provide more benefits to producers.

Companies involved in non-chemical farming type must conform to standards regulated by USDA NOP. The NOP develops rules & regulations regarding production, handling, labeling, and implementation of USDA based products. This rulemaking needs input from the National Organic Standards Board (NOS) and public. The NOP also maintains a reference manual, which includes guidance, instructions, documents, and policy memo relating to prescribed standards. This type of farming is carried on in over 160 countries and holds about 1% of the total arable land.

In Europe, the source of seed production needs to be listed on the EU common catalogues of varieties. The product then need to fulfill conventional regulations on quality including no weed and additional certification is required finally to market the products.

Organic Materials Review Institute (OMRI) consists of a database for certified products with a goal to provide a common platform to find stock supplies. This site can be used in free terms by public searching by variety or crop or company type. Industry players should register with OMRI for database inclusion.

What Information does this report contain?

What was the historic market data from 2012 to 2015, what is the industry growth forecast from 2016 to 2024?